Duties of the “treasury center”

        A “treasury center” is another option for Thai companies with international business networks or multinational corporations (Multinational Corporation: MNC) to manage income, expenses, and other foreign currency transactions.

The duties of the treasury center are as follows:

• Examine the obligations of the group companies;
• Present documents to commercial banks (Bangkok Bank):

(1) A copy of the license to operate as a treasury center;

(2) Copy of name list of affiliated companies.

• Prepare a report in accordance with the form specified by the officer;
• Keep accounting records and records of documentary evidence for at least five years, and they may be stored at the group;
• The treasury center’s accounts shall be clearly separated from those of the group of companies, including records of the treasury center’s financial transactions clearly separated from other businesses;
• Request permission from the group of companies if you want to add a group of companies;
• Notify the change in juristic person status, the name of the treasury center or group of companies, the reduction in the number of group companies, and the expansion or contraction of the scope based on the criteria established by the competent officer;
• Prepare lending and derivative transaction certifications for submission to authorized juristic persons, including the following:

(1) Certificate of sending foreign currency to the treasury center lending;

(2) Derivatives certification referring to the Thai baht exchange rate of the treasury center.

Every month, the treasury center is required to submit five data reports to the Bank of Thailand (BOT):

1. Transaction between TC and GC  (DF_TGC) is a transaction between a treasury center and a group of companies, such as receiving goods or services on behalf of a group of companies or trading in foreign currency between the TC and a group of companies;

2. TC Lending and Borrowing  Transaction (DF_TLB) is a report on loans borrowed/ repaid or loans lent/ repaid between group companies/ authorized juristic persons/ juristic persons in foreign countries;

3. TC Foreign Currency Deposit  Arrangement (DF_TDA) is the Exchange Control Officer-authorized Offshore Deposit Account Details (OFCD) of TC and its group companies and business networks;

4. TC Foreign Currency Deposit  Transaction (DF_TDT) is a deposit/ withdrawal/ transfer/ outstanding balance report of TC’s offshore deposit account (OFCD);

5. TC Investment in Debt Securities  (DF_TDS) is a detailed report of TC’s investments invested in foreign debt securities.